South Korean Court Dismisses Terra Co-founder’s Arrest Warrant

SEC
  • The Court rejected the prosecutors’ arrest warrant of Terra officials including co-founder Daniel Shin.
  • The court opted to reject the arrest order of people who made illegal profits, as per lawyers.

The Seoul Southern District Court has rejected the prosecutors’ arrest warrant of Terraform Labs associates. According to Yonhap News Agency, the court has dismissed the arrest order of several Terra officials, including Daniel Shin, co-founder of Terraform Labs with Do Kwon.

In a text message, the South Korean Court stated that it is hard to assume Daniel Shin poses a flight risk or would obliterate evidence from his conduct during the inquiry. The court added that it has dismissed the arrest warrants for seven additional individuals involved in the case. According to Yonhap, they include three initial investors and four Terra developers.

The court further mentioned the necessity to ensure the suspect’s right to defend himself against the key allegation of violating capital market rules.

A “Strike” for Prosecutors

Following the judgment regarding the arrest warrant, the lawyer’s office texted, “It is hard to understand the court’s decision.” The court opted to reject the arrest warrants of people who allegedly generated unauthorized profits while purporting to be defending their rights to self-defense while acknowledging the seriousness of the accusations, the prosecutors claimed. They will further review the court’s decision or may issue another arrest order. 

Moreover, Do Kwon, the CEO of Terraform Labs, welcomed the recent decision from the South Korean court by tweeting, “Strike 2.” Additionally, in a statement, Terra Labs specified the  rejection of the arrest warrants, stating:

Once again illustrates that the prosecutors are trying to stretch Korean laws beyond their breaking point.

There are several active threads in the case. The court is currently looking for Do Kwon, whose location is unknown. The collapse of Terraform Labs’ tokens Terra and Luna wiped out $50 billion in value, and several Terra investors have suffered significant financial losses. It also resulted in a massive downfall of the global cryptocurrency market. 

Recommended For You

A passionate content writer, particularly interested in sports writing. Always keen to explore crypto world.